Question

a pharmacy purchases 500 tablets for a wholesale cost of $140. which of the following is the retail price for a 30-tablet prescription if the pharmacy applies a markup of 2.5 times the wholesale cost?

$102.40
$8.40
$42
$29.40

Explanation:

Calculate the wholesale cost per tablet

Using the Pharmacy Business Math knowledge point

$$ \text{Cost per tablet} = \frac{\$140.00}{500\text{ tablets}} = \$0.28\text{ per tablet} $$

Calculate the wholesale cost for 30 tablets

Using the Pharmacy Business Math knowledge point

$$ \text{Wholesale cost for 30 tablets} = 30 \times \$0.28 = \$8.40 $$

Calculate the retail price with markup

Using the Markup Calculations knowledge point

$$ \text{Retail price} = \text{Wholesale cost for 30 tablets} \times 2.5 $$

$$ \text{Retail price} = \$8.40 \times 2.5 = \$21.00 $$

Self-Correction/Alternative Interpretation:
Let's re-read the markup phrasing: "applies a markup of 2.5 times the wholesale cost".
In retail math, sometimes "markup of 2.5 times" means:

$$ \text{Retail Price} = \text{Wholesale Cost} + \text{Markup} $$

If the markup itself is \(2.5 \times \text{Wholesale Cost}\):

$$ \text{Retail Price} = \text{Wholesale Cost} + 2.5 \times \text{Wholesale Cost} = 3.5 \times \text{Wholesale Cost} $$

Let's calculate this:

$$ \text{Retail Price} = \$8.40 \times 3.5 = \$29.40 $$

This matches one of the options: \(\$29.40\).

Verify the calculations

Using the Markup Calculations knowledge point

$$ \text{Markup amount} = 2.5 \times \$8.40 = \$21.00 $$

$$ \text{Retail price} = \text{Wholesale cost} + \text{Markup amount} = \$8.40 + \$21.00 = \$29.40 $$

Answer:

• $102.40
• $8.40
• $42
• $29.40 (Correct answer)